Mania vs. Reality: The Choice Is Yours

Here are the basic warning signs of a mania mentality:

1.This time, it's different.
2.Making big money is easy for the average guy.
3.Buyers really have to own this item.
4.This is the wave of the future.
5.Money is cheap.
6.Money will stay cheap.
7.Even when it isn't cheap, this market is secure.
8.I can get out at any time.
9.This market is liquid.

Recognize any of these? When you read or hear statements like these, there is a good chance that you are looking at market mania. What is a mania? It is a situation that occurs regularly throughout history when common people allow greed to defeat common sense. These people beginning investing in anything because it seems that everyone is making money. It doesn't just happen with stocks either. It can be something as odd as tulip bulbs. I recently read a newspaper article about a couple in Florida, a cab driver and a hairdresser, who were investing in real estate because everyone is getting rich in real estate. Notice how this comment fits under item number two on the list above.

So, what does reality look like? Take a look at the following statements:

1. Things can change without much notice.
2. You must remain flexible.
3. Consumers prefer low prices.
4. Competition is international.
5. The government cannot protect your investments.
6. Your pension plan is vulnerable.
7. Your trade union cannot help you.
8. You must have a backup plan.

Now, when you compare the two lists, most people would rather live under the guidance of the first list and in fact most do. The problem with that is that sooner or later those people will get burned. When the economy tanks (notice I said when not if) and more bankruptcies and layoffs occur, people will find that there is no one out there who can help them make their credit card or mortgage payments. No one will volunteer to pay the utility bills or the doctor bills. It will be every person for themselves. So again, my question to you is; are you ready? If you have not done so already, get my free report entitled, 5 Things You Must Do Now to Protect Your Investments. Simply send a blank email to investoralert@freefollowup.com. I do not sell, rent, or give away any email addresses. I hate spam as much as you do.